Correlation Between Siam Wellness and Praram 9

Can any of the company-specific risk be diversified away by investing in both Siam Wellness and Praram 9 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Siam Wellness and Praram 9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siam Wellness Group and Praram 9 Hospital, you can compare the effects of market volatilities on Siam Wellness and Praram 9 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Siam Wellness with a short position of Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and Praram 9.

Diversification Opportunities for Siam Wellness and Praram 9

0.42

Correlation Coefficient

Siam Wellness  Praram 9

Very weak diversification

The 3 months correlation between Siam and Praram is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital and Siam Wellness is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Siam Wellness Group are associated (or correlated) with Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Siam Wellness i.e., Siam Wellness and Praram 9 go up and down completely randomly.

Pair Corralation between Siam Wellness and Praram 9

Assuming the 90 days trading horizon Siam Wellness is expected to generate 17.94 times less return on investment than Praram 9. In addition to that, Siam Wellness is 1.11 times more volatile than Praram 9 Hospital. It trades about 0.01 of its total potential returns per unit of risk. Praram 9 Hospital is currently generating about 0.2 per unit of volatility. If you would invest  2,038  in Praram 9 Hospital on September 13, 2024 and sell it today you would earn a total of  487.00  from holding Praram 9 Hospital or generate 23.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Siam Wellness Group  vs.  Praram 9 Hospital

Siam Wellness Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siam Wellness Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Siam Wellness is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Praram 9 Hospital

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Praram 9 Hospital are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Praram 9 disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siam Wellness and Praram 9

The main advantage of trading using opposite Siam Wellness and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, Praram 9 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Praram 9 will offset losses from the drop in Praram 9's long position.

The idea behind Siam Wellness Group and Praram 9 Hospital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.